IQVIA Holdings Inc. stock research
FY2023 Q3
IQVIA Holdings (IQV) Gross Margin — Quarter Ended Sep 30, 2023
Revenue remained stable while gross profit increased, leading to an improvement in gross margin. Cost of revenue was relatively unchanged, allowing the higher gross profit to directly lift the margin.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue remained stable while gross profit increased, leading to an improvement in gross margin. Cost of revenue was relatively unchanged, allowing the higher gross profit to directly lift the margin.
- The strongest observable margin driver was the increase in gross profit relative to revenue. This improvement occurred alongside a stable cost of revenue compared to the prior quarter.
- Compared to the immediately preceding quarter, gross margin improved as gross profit rose while revenue was similar. Versus the same quarter one year earlier, both revenue and gross profit were higher, and gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
23.1%
Gross profit
$862.0M
Revenue
$3.7B
Cost of revenue
$2.9B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+0.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $3.7B | $802.0M | $2.9B | 22.0% |
| Jun 30, 2023 | $3.7B | $850.0M | $2.9B | 22.8% |
| Sep 30, 2023 | $3.7B | $862.0M | $2.9B | 23.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.3 pts
Year-over-year change
Sep 30, 2022
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the increase in gross profit relative to revenue. This improvement occurred alongside a stable cost of revenue compared to the prior quarter.
Compared to the immediately preceding quarter, gross margin improved as gross profit rose while revenue was similar. Versus the same quarter one year earlier, both revenue and gross profit were higher, and gross margin also improved.
Monitor the trend of cost of revenue relative to revenue, as it is a key determinant of gross margin stability.